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Gold Price May Fall Heading Into the Weekend

2018-04-27 18:00:00

Dylan Jusino,

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Traders Are 23% Less Net-Short

Spot Gold: Retail trader data shows 78.5% of traders are net-long with the ratio of traders long to short at 3.65 to 1. The number of traders net-long is 0.4% lower than yesterday and 23.6% higher from last week, while the number of traders net-short is 6.5% lower than yesterday and 23.8% lower from last week.

Gold Yields Bearish Signal

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias.

--- Written by Dylan Jusino, DailyFX Research

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